MUMBAI: Communications satellite firm  Eutelsat group has exercised the put option signed with EQT Infrastructure VI fund (“EQT”) on 9 August 2024 regarding a majority stake in a newly created entity that will hold Eutelsat’s passive ground infrastructure assets. This decision follows the completion of the consultation processes with relevant employee representative bodies of Eutelsat. 

The exercise of the put option led to the signing of a binding share purchase agreement (SPA) between Eutelsat and EQT. 

As announced on 9 August 2024 upon signing of the put option agreement, the transaction consists in the carve-out of the Eutelsat’s passive ground infrastructure assets (land, buildings, support infrastructure, antennas and connectivity circuits for the combined portfolio of teleports and SNPs) to form a new company to be incorporated as a standalone legal entity.

Eutelsat has around 1,400 antennas across more than 100 locations globally, allowing satellite communications for Eutelsat group, OneWeb and third party clients.

Under the terms of the agreement, EQT will acquire an 80 per cent stake in this new entity, while Eutelsat group will remain committed as long-term shareholder, anchor tenant and partner of the new company with a 20 per cent holding alongside EQT. 

The transaction values the new entity at an enterprise value of €790m. It remains subject to customary conditions precedent, and closing of the deal is expected in the first quarter of calendar year 2026.